Advanced Info Service Public Company Limited. Report on readiness to tackle the year A.D. 2000 (Y2K) Problem 1. Y2K Projects progress 1.1 Computer System We have started to develop, test and implement our major systems which are Y2K compliance since 1997. They are as the list below : 1.1.1 Customer Administration and Billing Computer Systems (CUBICS) 1.1.2 Back Office System (SAP/P3) 1.1.3 Service Center System 1.1.4 Call Center System 1.1.5 Intranet System 1.1.6 Datawarehousing, Fraud Management and SIS Systems 1.2 MTX / MSC Switching systems We completed the inventory and impact analysis phase in Q3 of 1994. The testing phase has to be enhanced from Q4 of 1998 to Q1 of 1999 (The detail plan will be shown on next page). Currently we are on the process of software and equipment upgrade at MTX / MSC switching and base station nationwide. For Integration test with other system, it will be completed in June 1999 1.3 Total cost of investment AIS has deployed new services to the customers consecutively through computer system since 1996. The cost of Y2K project implementation will be P.Cs BIOS fixing which is approximately 50 million Baht. For MTX / MSCs switching software and equipment, the upgrade cost are included in the maintenance contract agreement. 2. Analysis and explanation of the management AIS is very confident that all core business systems are Y2K compliance and all AISs business partners are also investigating to ensure their Y2K compliance status. 2.1 Internal AIS Computer system 2.1.1 AIS core application systems have been developed since 1997 and they are Y2K compliance. CUBICS is one of these systems used for delivering services to customer such as billing, registration, collection, credit control and customer care services. 2.1.2 Workstation P.C. and P.C. application We are on the step of BIOSs fixing for P.C. and workstations at Shinawatra towers, Maneeya, Univest Tower, Muangthongthanee, Branches, Outlets, Service centers and AISs dealers throughout Thailand. This correction will be completed by the end of 1998 2.1.3 MTX / MSC Switching Software upgrade for MTX / MSC switching has currently been tested, implemented and the target integration test with Nokia, Ericsson will be completed in June 1999 2.2 External System outside AIS AIS has developed Y2Ks Project incorporate with the third parties to the ensure the completeness of Y2K compliance on which external and internal data such as CDR (Call Detail Records), Bank transfer data and the transaction come from other business units. 2.2.1 Telecom Service Provider in Thailand. 2.2.2 Banking and Financial Services 3. Year 2000 Project Implementation 30/10/1998 3.1 Y2K Problem Solving Phase Year 2000 Project Implementation Wireless Communications Shinawatra Group ACTION PLAN 1998 1999 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1)Preliminary Phase Year 2000 Education and P.R. (Incorporate with SC&C and CA) x Set up Year 2000 Wireless Committee x 2)Inventory Analysis Phase Inventory of All Computer and None Computer Equipment x 3)Impact Analysis Phase Identification of Impact Computer and None Computer Equipment x x Identification of Impact Program and Data x Software and Hardware Upgrade Strategy x File / Database Conversion Strategy x 4)Correction Phase x Hardware and Firmware Upgrade / Replacement x Software and Operating System Upgrade x Program and Data Conversion x File / Database Conversion x Bridging All x 5)Testing Phase x Unit Testing x System and Acceptance Testing x 6)Final Implementation Phase x Implementation of production system changes x Migration to production x 3.2 Group of persons of agencies responsible for solving the problem Department Name Position Head of Committee Arpattra Sringkarrinkul Vice President-Operation Support Service Operation Busaya Sathirapipatkul Wireless Application Manager Isara Dachakaisaya Wireless System Management Peerapan Panitchphathom Billing Management Manager Niwat Chotwongvoranant Collection & Credit Control Manager Jirapong Palanusorn Operation Service Manager Wallop Thamronglak Administration Support Officer Suphat Tuntiphut New Product Development Manager Engineering Chatchai Saksoonthornsiri Eastern Region Engineering Manager Nuwat Prasitvoranant Western Region Engineering Manager Boonchai Nirathisai Network Information System Manager Wannee Sriviset Software Development Manager Nontharat Thongpompluksa Value Added Service Manager Prawat Nikanjanakool Act. AVP-Site & Acquisition To-Un Napaporn GSM Services Manager Shinawatra Wireless Nirat Kanjananakphan Terminal Product Management Marketing Chawal Ngamwongsakollert Accounting Manager Namfon Nutma Sales Officer Aroonporn Limsakul Marketing Information Manager Rawat Manyam Marketing Officer Thawatchai kajornkittisak General Administration Manager Wireless Controller Jaranya Tungbanjerdsuk Human Resource Manager Sansanee Kumpalanuwat Accounting Manager Pensri Ayutaka Administration Manager Sunitaya Shinawatra Finance Manager Poonpol Ngendee Legal Manager Somchai Cherdchupanyachon Accounting Specialist Peeraya Sangsingkaew Accounting Specialist Walaiporn kajeenikorn Logistics & Procurement Manager Shinawatra Paging Thakolrat Kaewkan Operation Director Weerasak Rumaneeratanakul MIS Division Manager 4. Report on the Preparation of ADVANCs Subsidiary to Cope with the Y2K Problem The Implementation Progress to solve the problem 1. Main Computer System 1.1 Paging System - Servers Hardware using PC COMPAQ has already been upgraded the firmware with the cost of 18,000 Baht. - Network Operating System of Novell Netware The subsidiary purchased the upgrade license Version 4.11 Intra Netware and already upgraded on some work systems with the cost of 1.5 million Baht. There are still 70% of the work systems, which are not yet upgraded and most of which are being run in up-country. - Application Software 152 The subsidiary developed the software and already modified it to surmount the Y2K Problem. 1.2 Business Application System (BAS) - Server Hardware using SUN Enterprise 4000 is already compliant with Year 2000. - Server Hardware whose Backup equipment is SUN Sparc 1000 is in the process to be purchased and upgraded to SUN Enterprise 3500,anticipated to be complete by the end of 1998 with the expected cost of 3.8 million Baht. - Operating System using Solaris 2.5 is needed to be upgraded to Solaris 2.5.1 , and the subsidiary has found no problem when the test was put on its Backup equipment. The subsidiary will also launch the system on Production within 15/11/98 and the upgrading cost will be included in its 1999 maintenance cost. - Although Database Management Sybase Release 10 is not 100% run with year 2000 compliance, it can avoid the problem by not using data type which is small date. As a result, the subsidiary needs not to upgrade and found no problem when it made the test on the system. - The subsidiary has already tested BAS Application and rectified every minor system. 1.3 Invoice Printing System - Laser Printer using Siemen 2090 has no impact from the Y2K problem. - PC controlling the printing process and running on Window 3.1 uses Software PrintSoft, which cannot tackle the Y2K problem. However, the printing process needs not to use the date, and the subsidiary has found no problem after it made the fast forward test. - Envelope Folding Machine has no impact from the Y2K problem. 1.4 Value Added Service - Stock Alert System is developed by the subsidiary and run on Window NT, which has no impact from the Y2K problem. - The 153 System is developed and run on Window NT, which has no impact from the Y2K problem. - MoneyLink System is developed by the subsidiary and has no impact from the Y2K problem. - Internet Service System has no impact from the Y2K problem. - Email Alert System is developed by the subsidiary and has no impact from the Y2K problem. - CDROM Page System is developed by the subsidiary and has no impact from the Y2K problem. - IVR System providing the automatic billing inquiry service has no impact from the Y2K problem. 1.5 Networks equipment - Router of Cisco Router The company is entering into the maintenance agreement which also covers the firmware upgrade to support Year 2000, and the equipment is expected to be upgraded by 15/12/98 with the cost of 230,000 Baht. - Terminal Server of Annex Terminal Server needs to be changed its firmware, and the subsidiary is currently waiting for the supplier to implement, which is expected to be complete by 30/11/98 with the cost of 150,000 Baht. - Satellite System of Acumen and Samart has no impact from the Y2K problem. - Ethernet Hub, Switching Hub, LAN Card, Modem and Multiplexer have no impact from the Y2K problem. - Optic Mux has no impact from the Y2K problem. 1.6 Paging System - Glenayre 3000 XL (Version 5.02) is waiting for the answer from supplier. - Glenayre 3000 Model M and S (Version 5.01) is informed by the supplier that there will not be any assessment of the readiness of the system to cope with the Y2K problem. Therefore, the subsidiary plans to terminate the usage of this system. - Glenayre 3000 Model ES (Version 5.01) whose usage is not related to the time is not planned to be upgraded despite no readiness assessment to handle the Y2K problem. - C2000 has no impact from the Y2K problem. 2. Telephone Exchange Cabinet System 2.1 PABX Model Definity G3r4 and G3iV3 has no impact from the Y2K problem. 2.2 PABX Model Definity G3rV2 needs to be patched, anticipated to be completely done by 31/12/1998. 2.3 PABX Model Panasonic KXT-1232 has no impact from the Y2K Problem. 2.4 CMS R3V2 needed to be changed its hardware and software, anticipated to be completely done by 30/04/1999 with the approximate cost of 5.6 million Baht. 3. Electronic System 3.1 UPS - Emerson (Libert) has no impact on the Y2K problem - Comet (MGE) has no impact on the Y2K problem - Iwatec (Wartford) has no impact on the Y2K problem - Leonic (Leonic) has no impact on the Y2K problem - Powertronic (Shinabis) has no impact on the Y2K problem - Siemens (Watford) has no impact on the Y2K problem - Socomec (Unitrio) has no impact on the Y2K problem 3.2 Generator - Petbow (U-Gen) has no impact on the Y2K problem - Dale (Dale) has no impact on the Y2K problem - Thai-Gen (Thai-Gen) has no impact on the Y2K problem - Onan (Diethelm) has no impact on the Y2K problem - Cummins (Diethelm) has no impact on the Y2K problem 4. Office System 4.1 Computer - The survey of the offices hardware discovered that there are still some hardware which is not compliant to Year 2000, but this problem can be resolved by using with the software that can help push the hardware running through Year 2000. - OS and Software require the version upgrade, being in the process, and are anticipated to be completely done by 30/04/1999 with the expected cost of 850,000 Baht. 4.2 Other office systems do not have the impact form the Y2K problem. 5. External Work Unit The subsidiary is contacting with all related external work units to be informed whether they are ready to tackle the Y2K problem and is expected to receive all answers by 30/11/98. 6. Analysis and Explanation from Management The preparation to handle the Y2K problem of the subsidiary is currently in the Correction Phase, whose previous plan is to be complete by the end of 1998. However, some work systems need longer times for the implementation, leading to the extension of the Correction Phase to be complete by the end of Q1/1999 with the following details. 1. The upgrade on 152 operating system needed to be tested the new version requires the longer times to be adjusted into all branches throughout the country. 2. The operating system and software upgrade on PC nationwide need longer times as mentioned in 1. 3. The CBS telephone exchange cabinet system needs to be upgraded on both hardware and software where suppliers will undertake such upgrade and the subsidiary expects to be complete in Q1/1999. It is seen that most of the works are following very closely with the target and the progress of correction phase shows approximately at 60% with the paid expense of 1,680,000 Baht. The subsidiary expects the further expenses of 12 million Baht. 7. Verification of Data We have already cheched all the text and data present in this report form and hereby certify that they are correct and completed. No misunderstanding contents as well as the loss of relevant infromation that may causes damages to a person holding securities of making a tender offer, has been found in this report. For the purpose of authentication that this report is a certified document set, we have assigned Arpattra Saringkarinkul to be an authorized person, by affixing her signature for authentication on each page of this document set, If any document does not contain the signature of Arpattra Saringkarinkul, we hereby regard that it is not our certified data. Name Position Signature 1. Mr.Boonklee Plangsiri Director -Signature- 2. Mr.Dumrong Kasemset (Ph.D.) Director -Signature- 3. Mrs. Siripen Sitasuwan Director - Signature- 4. Miss Nongluck Phinainitisat (Eng.D.) Director - Signature- Authorized Appointee Mrs. Arpattra Saringkarinkul Vice President Operation Support -Signature-